When buying a new home, people should consider a few things which can make this process easier. People face several difficulties when buying their first home. Relocation is not as simple as people think. A number of factors are to be considered in this process. We get many questions about this matter.
What are the important things a first home buyer should concentrate on? How to buy your first home easily?
These questions are common for couples who are looking to move into a new house. They might have just started their life together and they could be looking for a new house to start their life.
Specifically in New South Wales, getting a new home might be a difficult task. However, there are certain aspects to be noted which can make this process easier.
Further, we will provide some tips for first buyers in New South Wales.
Tips for new buyers in New South Wales:
Prepare a budget
The most important tip when buying a new home is planning out a realistic budget. Planning a practical budget and sticking to it can save you from going bankrupt. When you make a budget and stick to it, you will always be in control of the finances and your investment.
This can help new couples in organizing their home loans as well. When preparing a budget, you have to keep in mind your income and plan it accordingly. This will help you to prepare ahead of time for all possible contingencies.
If you are looking for a new house, you should consider a mortgage broker. A mortgage broker would help you find the best place with a suitable home loan. People may be involved in different situations. For example, a new couple may be expecting a child.
They might need a house which is bigger and in a better locale. The home loan they pick might not be best suited. However, hiring the services of a mortgage broker will help you avoid such an issue.
First Home Owner Grant
The best time to apply for the First Home Owner Grant is while applying for a home loan. You can do this through authorised lenders. This would speed up the process. There are higher chances of you getting a first home owner grant.
As Paul Bloxham writes,
“While housing turnover varies over time, on average, around 6 per cent of the housing stock, or around 500 000 dwellings, change ownership each year. In 2009, first-home buyers accounted for an unusually large share of this turnover, although this share has since declined.”
The First Home Owner Grant (New Homes) Scheme is fully funded by the NSW Government and administered by the Office of State Revenue (OSR). The scheme was established to assist eligible first home owners to purchase a new home or build their home by offering a $15 000 grant.
The grant applies to new homes only and does not apply to the purchase of an established home, vacant land, business premises or a holiday house. The grant will reduce to $10 000 on 1 January 2016.
If you live in New South Wales you can find the current Application form and guide here.
Make sure you cover all the extras as well. The moving costs, insurances, utility bills etc. You have to look into every small detail when looking to buy a new home.
There is no rule as such about what the deposit should be. It depends on you how much you are willing or consider as safe to pay. However, 20% is considered the ideal deposit when buying a new home. The usual deposit that is required is 5% plus costs. When buying a new home, large deposits can help you.
The bigger the deposit, the fewer lenders mortgage insurance (LMI).